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Taiwan's Green Energy Transition Under Volume 15 | Issue 21 | Number 5 | Article ID 5085 | Nov 01, 2017 The Asia-Pacific Journal | Japan Focus Taiwan’s Green Energy Transition Under Way Justin Chou, John A. Mathews Abstract: The main elements in Taiwan’s already shown signs of a sharp reduction, down green power shift are reviewed, with focus on from 400 TWh in 2015 to 300 TWh in 2016, and developments since the election of the DPP anticipated further reductions to zero by 2025 government in early 2016 and its commitment as no new starts are to be allowed. But debate to phase out nuclear power in Taiwan by 2025. over the possible future of nuclear power in The drivers of the shift are identified,Taiwan continues, and the power outage in concentrating on solar PV power and the August (the ‘815 incident’) has prompted calls potential for offshore wind power. Like other for the restart of nuclear reactors that have countries in East Asia similarly pursuing a been shuttered. green shift, Taiwan is as much concerned with the business and export prospects for green The DPP government has pursued a strong industry as with reducing carbon emissions. commitment to raising the contribution of The argument is developed that furthergreen sources (meaning: power sourced from progress in Taiwan is linked to liberalization of water, wind and sun) to electric power the electric power sector, creating genuine generation. In proportional terms the competition for the quasi-monopoly, TaiPower. contribution from WWS sources has risen from 4.8% in 2015 to 6.6% in 2016 (including 1.5% Keywords: Taiwan; renewable power; anti- of pumped hydro storage), with a target of 20% nuclear; WWS (water, wind and sun); smart to be reached by 2025, i.e. over the next eight grid; electric power liberalization years. Excluding nuclear, this is planned to come largely from a strong expansion of the Since the election of the DPP government led solar PV sector, being raised from a capacity of by Tsai Ing-wen, in Jan 2016, the goal of an 1.3 GW in 2016 to 20 GW by 2025. Over the energy transformation in Taiwan has been same period wind power is to be raised in pursued vigorously. The most significant capacity from 755 MW to 4200 MW (4.2 GW). element of the shift is the phasing out of But again complexities in approvals processes nuclear power, guided by the oft-repeated mean that progress in actually installing the policy of achieving a nuclear-free homeland by new capacity for solar PV and wind power is 2025. But politics is never easy, and a major slow. It was a welcome development when a power outage in August, lasting for five hours, new offshore wind farm, the Formosa1 project, and caused by malfunction of a gas supply saw turbines installed and delivering power to valve in a gas-fuelled power generator,the grid. Taiwan has attracted support from prompted widespread debate andforeign renewable energy companies, notably recriminations. Both the Minister for Economic the Danish energy giant DONG Energy as Affairs (Lee Chih-kung) and the Chairman of partner in the new Formosa1 wind farm the gas supply company CPC Corp. (Chen Chin- project. te) resigned in order to take symbolic responsibility for the disastrous incident. The DPP government has an energy security policy commitment which focuses on natural Nuclear-powered electricity generation has gas as interim bridging fuel while nuclear is 1 15 | 21 | 5 APJ | JF wound back and renewables are wound up – nuclear power and fossil fuels, in a bid to more or less as in the case of Germany’s energy promote green entrepreneurial initiatives and transformation (Energiewende) program. The innovation in the power sector. contribution of coal is to be wound back, with its proportional contribution being lowered Taiwan thus presents a fascinating case of the from 45% down to 30% of electricity generated global green shift that is underway, where the by 2025, while gas is seen as the bridging commitment to move to a green power system power source and is projected to peak at 50% is reinforced by a political shift to the DPP, and of power generation by 2025. the government is taking every possible The arresting feature of Taiwan’s green shift is measure to strengthen its green shift with that it is part of a comprehensive industrial supportive industrial strategy aimed at building strategy that sees new industries andinnovative green industries for the future. In innovation as the driver of the next phase of this sense Taiwan is pursuing a renewable Taiwan’s industrial development. The present energy strategy that is common across East government’s strategy has morphed into what Asia – in China, Japan, Korea as well as Taiwan. is called the ‘5+2’ industrial innovation plan. To borrow the phrase used by DeWit in relation The aim is to shift Taiwan’s industrial base, to Japan, this may be termed a strategy of which is still very strong in manufacturing building ‘energy resilience’.2 industry, away from traditional reliance on contract manufacturing and focus instead on Clean energy targets: Green shift in higher value-added service and green oriented electric power generation business models. President Tsai’s election campaign in late 2015 had as one of its central The situation in terms of electric power elements the anticipated promotion of ‘Five generation in Taiwan in 2016 is shown in Fig. 1 Pillar Industries’ to drive growth in the future – – the situation at the start of the country’s the Internet of Things (IoT) (also known as the ‘Asian Silicon Valley’ project), biomedical green shift. The legacy of thermal power industries, green energy, smart machinery and (burning fossil fuels) and nuclear is clearly defence. Since the election of the DPPstrong. Total power generation in 2016 government in January 2016 the focus has amounted to 2257 TWh (or billion kWh), with broadened to encompass two new concepts, 37% coming from coal and 36% from gas. The namely a ‘new agricultural paradigm’ and the changes in Taiwan’s electric power generation, ‘circular economy’ so that the project became and anticipated changes in capacity, are shown known as the ‘5+2’ industrial strategy. It has in Figs. 2 and 3. and Table 1. Fig. 2 depicts the since broadened even further to encompass the history of the changes in power sources and digital economy and cultural innovation – but Fig. 3 the new renewable energy targets for the name ‘5+2’ remains. Taiwan is distinctive 2025 (i.e. in 8 years’ time), in the proportions amongst industrial powers in its clear as anticipated and in the amounts generated, conception of linking green energy and wider assuming only marginal growth in electric economy goals with industrial development power generation overall due to efficiency strategy. improvements and direct solar power Meanwhile there are moves to further liberalize generation. Taiwan’s electric power market, reducing the monopoly control of Taiwan Power Co.Figure 1. Taiwan’s electricity generation, (TaiPower) with its legacy commitments to 2016 Source: Based on data from TaiPower 2 15 | 21 | 5 APJ | JF Source: Based on data from TaiPower Figure 3 depicts the anticipated proportions in 2025, and probable actual generation levels, Figure 2. Changing electricity sources in based on what we assume to be total Taiwan, 1950-2016 Source: Based on generation in that year of 2400 TWh. This is Taiwan Power Company historical data, re- plausible if consumption growth is constrained organized by Justin Chou by energy efficiency measures and growth in direct solar photovoltaic (PV) generation. Figure 3. Changing sources for electric power generation in Taiwan, 1950-2016 Source: Based on Taiwan Power Company historical data, re-organized by Justin Chou Table 1. Renewable energy capacity expansion target, by Taiwan Bureau of Energy In October 2016 the Taiwan government (Executive Yuan) issued short-term targets for solar PV growth and again in June 2017 for wind power. The solar PV program is to be phased out over two years, raising solar PV capacity to 1.5 GW. Measures are to be taken 3 15 | 21 | 5 APJ | JF to release land needed for the development of Energy Policy, the Executive Yuan of Taiwan solar PV farms, including rooftops in public has taken decisive action in short term and buildings owned by the central government, long term strategy designed to achieve a non- factories, farms and agricultural production nuclear homeland by 2025.5 This has included facilities, land used by the salt industry, aquatic stabilizing thermal power supply with better areas such as reservoirs, irrigation ponds, fish efficiency, adopting demand respond (DR) and farms (collectively known locally asprice differentiation on electricity, and planned ‘floatovoltaics’) and landfills. The program will reductions in energy consumption levels. In the also be addressing planning and regulatory medium - term, natural gas power generator controls that are inhibiting rapid shift to solar will play the role of bridging fuel and will be PV power.3 In addition to the national policy expected to peak at 50% of power generation. goals there is strong promotion of renewables Overall renewable energy sources are at municipal level, particularly by Taipei, anticipated to reach 20% of the power Tainan, Kaohsiung and Taoyuan localgeneration by 2025. To achieve this goal, smart jurisdictions. grid and metering have to be implemented and large energy storage solution such as more Wind power is to be promoted under a four- hydro pump is required. year plan that aims at enhancing domestic demand and taking a balanced approach to By having a goal of strengthening the industry both onshore wind and offshore wind power. of Taiwan, MOEA aims to increase the The target is to reach an extra capacity of 3 GW manufacturing GDP share of green energy and offshore wind power and 1.2 GW in onshore emergent technology to 30% of total (land-based) capacity, making 4.2 GW of wind manufacturing in Taiwan by 20206, which was power over the period 2017 to 2020, and only 4% in 2008.
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